Summary:
Investors in Ripple (XRP) are excited about the partnership between Swiss FinTech Metaco and major bank HSBC. Metaco, acquired by Ripple in the spring, brings cryptocurrency expertise to HSBC. However, doubts arise as the announcement does not mention Ripple or XRP, and Metaco’s role is primarily focused on secure custody of digital assets for HSBC customers.
Introduction:
HSBC plans to offer its customers custody and trading in tokenized asset classes such as gold starting in 2024. To achieve this, the bank is collaborating with Swiss FinTech Metaco, which was acquired by Ripple for $250 million in May. This collaboration raises questions about whether Ripple indirectly does business with a major bank through HSBC and if XRP can be involved in the deal.
Main Points:
- HSBC partners with Metaco, acquired by Ripple, to offer custody and trading of tokenized assets.
- Ripple’s acquisition of Metaco raises optimism among XRP investors.
- Metaco’s primary responsibility is secure custody of digital assets for HSBC customers.
- HSBC focuses on trading tokenized assets, not mentioning Ripple or XRP.
- Ripple technology is used in the background, but XRP is not involved in this collaboration.
Conclusion:
Ripple’s hope of winning US banks as customers has not materialized, despite the recent success with the US Securities and Exchange Commission (SEC). XRP was designed as a bridge currency for cross-border transfers, but banks have been testing or using Ripple’s network without integrating XRP. Furthermore, Ripple’s aspirations in state digital currencies do not involve XRP. Investors are left wondering about the potential use cases for XRP that can support its price in the long run.